Allowing the appeal of the assessee the Tribunal held since employees to whom salaries were paid were non-residents as none of them were in India for a period of 182 days or more and salary was actually paid by head office of assessee in Netherlands, such salary amount was not taxable in India and assessee was not liable to deduct TDS on reimbursement of such salary expenses made by its project office to its head office. (AY. 2011-12)
Ecorys Nederlands B. V. v. ADIT(IT) (2021) 188 ITD 264 / 87 ITR 317 / 213 TTJ 833 (Delhi)(Trib.)
S. 40(a)(iii) : Amounts not deductible-Deduction at source-Outside India-Non-Resident-Reimbursement of salary-Not taxable in India-Not liable to deduct tax at source-DTAA-India-Netherlands. [S. 5, 6, 9, 192, Art. 14, 15]